looking for some advice regarding mortgages

[sherchar]

Been messes around with a 2nd hand house which was ready to move into had mortgage agreed etc. So had to start looking again. I've found this house which is a new build but not completely finished no kitchen no sanitary ware etc and no pc sum. also grounds outside required to be done. 4 bedroom bungalow with prospect of being made into 6 with extra bathroom. Guide price 210k but think I might get it for 190k. would be looking at around 40k to getting it completed altogether. We are classed as first time buyers and was wondering would the bank give us the 190k to buy house plus 50k to do it up? Been agreed for 250k mortgage. Not too sure how it works - would we get 250k but only if that was the purchase price?

Any advice is well appreciated.

Thanks

 

[ClubMan]

Guide price 210k but think I might get it for 190k. would be looking at around 40k to getting it completed altogether. We are classed as first time buyers and was wondering would the bank give us the 190k to buy house plus 50k to do it up?

The maximum a lender will advance these days is 100% (in certain cases). They will not advance > 100%. You may be able to borrow the rest elsewhere but this will probably impact your mortgage application and, of course, you need to figure out how much overall debt you can comfortable service.

Been agreed for 250k mortgage. Not too sure how it works - would we get 250k but only if that was the purchase price?

On a 100% mortgage yes. Some lenders will only advance a maximum of less than 100% to certain borrowers though in which case they will only advance €250K on a house costing more than that.

Have you factored in other ancillary costs such as legal/conveyancing costs?

 

[sherchar]

Yes we have savings for legal fees etc. would the only other way around it would be to get 100% = 190k mortgage and just stay with parents until we have done the work that needs done bit by bit?

 

[Hel_n]

Do you have any savings? You can borow 92% of the purchase price of a house and extra for home improvements that will increase the value on completion. You will need to provide quotes fot the work being carried out and you will have to submit a final valuation showing that the works have been carried out and the value has increased (max LTV 92%). IIB and First Active allow this, and I'm sure other lenders do too.